AM Best has affirmed Momentum Life’s financial strength rating of B++ (Good) and its long-term issuer credit rating of “bbb.” The outlook of these ratings is stable.
“The ratings reflect Momentum Life’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM),” the ratings agency added. “In addition, the ratings factor in a neutral impact from the company’s 100% ownership by BlueInc Group.”
AM Best expects Momentum Life’s risk-adjusted capitalization to remain at the strongest level over the medium term. It expects available capital to remain sufficient to offset this planned business expansion. The firm’s business profile is viewed as limited, reflecting its start-up nature and its concentration in New Zealand’s life insurance sector. Meanwhile, the insurer’s ERM is considered appropriate given the size and complexity of its operations at present.
“Over the medium term, Momentum Life’s risk management capability will likely need to develop in order to support increasing operational scale and a widening of its product offerings,” the agency added.
